MBS Day Ahead: Bond Markets Teetering on Technical Ledge; Could go Either Way

Things are finally getting interesting again for bond markets after almost all of 2014 has been relatively boring. Unfortunately, what’s interesting in terms of market-watching isn’t necessarily good for rates. Today’s chart shows this stark reality. Specifically in the two technical studies under the main chart, you can see just how different things are looking from the rest of 2014. Even in the upper section, the popular Bollinger Band study is working against us at the moment. Long story short, if 10yr yields remain unable to break below that middle line, the suggestion is for a return to the upper line, currently just over 2.70.

Leave a Reply

Your email address will not be published. Required fields are marked *